As of June 30, 2017, approximately
$279,108 of total unrecognized compensation expense related to non-vested share options is expected to be recognized over a weighted
average period of approximately 1.87 years. The total fair value of shares vested during the six months ended June 30, 2017 and
2016 was approximately $19,357 and $16,000, respectively.

(b) Warrants

In connection with the Company’s
financings, the Warner Brother Agreement and the service agreements, the Company issued warrants to service providers to purchase
common stock of the Company.

As of June 30, 2017, the weighted
average exercise price of the warrants was $2.23 and the weighted average remaining life was 0.96 years. The following table outlines
the warrants outstanding and exercisable as of June 30, 2017 and December 31, 2016:

June
30,

December
31,

2017

2016

Number
of

Number
of

Warrants

Warrants

Warrants
Outstanding

Outstanding
andExercisable

Outstanding
andExercisable

ExercisePrice

ExpirationDate

2012 August Financing Warrants (i)

428,716

536,250

$

1.50

08/30/17

2013 Broker Warrants (Series D Financing)

100,000

228,571

1.75

07/05/18

2013 Broker Warrants (Convertible Note)

114,285

114,285

1.75

11/04/18

2014 Broker Warrants (Series E Financing)

1,085,714

1,085,714

1.75

01/31/19

2016 Warrants to SSS (Note 12)

1,818,182

1,818,182

$

2.75

03/28/18

3,546,897

3,783,002

(i)

The warrants are classified as derivative liabilities as disclosed in Note 13.

(c) Restricted Shares

In January, 2017, the Company
granted 35,000 restricted shares to one employee under the “2010 Plan”. The restricted shares have a vesting period
of four years with the first one-fourth vesting on the first anniversary from grant date and the remaining three-fourth vesting
ratably over twelve quarters. The grant date fair value of the restricted shares was $43,750. As this employee left the Company
in February, no expense was recorded.

In March and April, 2017, the
Company granted 365,000 restricted shares to certain employees under the “2010 Plan”. The restricted shares have a
vesting period of four years with the first one-fourth vesting on the first anniversary from grant date and the remaining three-fourth
vesting ratably over twelve quarters. The grant date fair value of the restricted shares was $778,200.